FP7 was the European Union's Research and Innovation funding programme for 2007-2013.
The current programme is Horizon 2020 but there are many projects funded under FP7 which are still running.

SMEs make up a large part of Europe's economy and industry. The EU's 23 million SMEs account
for 99% of all businesses and contribute up to 80% of employment in some industrial sectors,
such as textiles.

What's the benefit for citizens:

European SMEs are an essential source of growth, employment, entrepreneurial skills,
innovation and economic and social cohesion. It is therefore essential to unlock the potential
through research and technological innovation which will help them survive and prosper in the
long run. Their closer working relationships with the research community will bring increased
value to the European economy, higher growth and more job opportunities.
FP7 proposes actions to increase the participation of SMEs in research and offers them measures
that will facilitate their access to research results. Other advantages for SMEs taking part in FP7
will include higher funding rates, a wider choice of funding schemes, the acquisition of new
knowledge and increased potential for new products and services.

What's the benefit for researchers:

Under FP7, SMEs can strengthen their overall position through networking and relationship
building with international partners, access to research centres of excellence, and development
of research and innovation.

Actions will be encouraged across the entire field of science and technology, utilising a
bottom-up
approach. Two dedicated measures will be implemented:

Research for SMEs: to support small groups of innovative SMEs in solving
common or complementary technological problems.

Research for SME associations: to support SME associations and SME
groupings in developing solutions to problems common to large numbers of SMEs in
specific sectors.

These two measures primarily address the large community of SMEs with a capacity to innovate
but with limited research capabilities. To increase the participation of and benefit for SMEs, the
outsourcing character of the measures will be strengthened.

What's the benefit for industry and SMEs:

Throughout FP7, SMEs will actively be encouraged to participate in all research actions,
especially those under the Themes of the Cooperation programme. The involvement of SMEs in
Joint Technology Initiatives (JTIs) will be encouraged wherever such activity is considered
appropriate.
A key feature of FP7 is the proposed simplification of rules and procedures. Envisaged measures
will cover the entire funding cycle, including the various elements of funding schemes,
administrative and financial rules, procedures, readability and user-friendliness of documents.

The proposed rules for Participation in FP7 specify a funding rate of 75% for research and
development activities of SMEs, rather than the 50% currently applicable in FP6. This should
make it more attractive for SMEs to participate in the Framework Programme by lowering their
financial burden. Furthermore, the current principle of 'collective financial responsibility' is
replaced in the proposal of FP7 with a guarantee fund, which would cover the financial risks of
defaulting project participants.